An investigation on behalf of investors, who currently hold shares of Esterline Technologies Corporation (NYSE: ESL), was announced concerning whether the takeover of Esterline Technologies Corporation by TransDigm Group Incorporated is unfair to NYSE: ESL stockholders.

The investigation by a law firm concerns whether certain officers and directors of Esterline Technologies Corporation breached their fiduciary duties owed to NYSE: ESL investors in connection with the proposed acquisition.

Bellevue, WA based systems primarily for aerospace and defense customers in the United States and internationally.

On October 10, 2018, TransDigm Group Incorporated (NYSE: TDG) and Esterline Technologies Corporation (NYSE:ESL) announced that they have entered into an agreement under which TransDigm Group Incorporated will purchase all of the outstanding shares of common stock of Esterline Technologies Corporation (NYSE: ESL) for $122.50 per share in cash, or a total transaction value of approximately $4.0 billion including the assumption of debt.

However, the investigation concerns whether the offer is unfair to NYSE: ESL stockholders. More specifically, the investigation concerns whether the Esterline Technologies Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Esterline Technologies Corporation (NYSE: ESL) reported that its annual Total Revenue rose from over $1.99 billion for the 12 months period that ended on September 30, 2016 to over $2.00 billion for the 12 months period that ended on September 29, 2017, and that its Net Income increased from $114.16 million to $120.36 million.


Shares of Esterline Technologies Corporation (NYSE: ESL) closed on October 12, 2018, at $16.93 per share.